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Money Concepts Barrie Website Disclaimer
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Thank you for visiting the Money Concepts Barrie Web site.
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We are obligated to inform you that the product descriptions and information that follow are intended for educational purposes only and are not to be considered as an offer or solicitation to purchase any security.
Commissions, trailing commission, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. To obtain a prospectus, or further information, please contact Taivi Tayler at 705-722-3604 ext. 1199. Offers to purchase securities must be made through a registered mutual funds representative. Representatives in the Barrie office are all agents of Investia Financial Services. a mutual fund dealer registered to sell securities in Ontario and some of the provinces. These advisors are also licensed to sell a variety of life insurance products through the National Financial Insurance Agency Inc.
All non-mutual fund related business conducted by your Money Concepts Barrie Representative is not in the capacity of an employee or agent of Investia Financial Services Inc. Non-mutual fund related business includes, without limitation, advising in or selling any type of insurance product, advising in or selling any type of mortgage service, estate and tax planning or tax return preparation.
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Borrowing Money to Invest
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Mutual fund units and other securities may be purchased using available cash or a combination of cash and borrowed money. If cash is used to pay for the purchase in full, the percentage gain or loss will equal the percentage increase or decrease in the value of the mutual funds. The purchase of mutual funds using borrowed money magnifies the gain or loss on the cash invested. This effect is called leveraging.
For example, if $100,000 of mutual fund units are purchased and paid for with $25,000 from available cash and $75,000 from borrowings, and the value of the fund units declines by 10% to $90,000, your equity interest(the difference between the value of the mutual funds and the amount borrowed) has declined by 40%,i.e. from $25,000 to $15,000.
It is important that an investor proposing to borrow for the purchase of securities be aware that a purchase with borrowed monies involves greater risk than a purchase using cash resources only.
To what extent a purchase using borrowed monies involves undue risk is a determination to be made by each purchaser and will vary depending on the circumstances of the purchaser and the securities purchased.
It is also important that the investor be aware of the terms of a loan secured by mutual funds. The lender may require that the amount outstanding on the loan not rise above an agreed percentage of the market value of the mutual funds. Should this occur, the borrower must pay down the loan or sell the mutual funds so as to return the loan to the agreed percentage relationship. In our example above, the lender may require that the loan not exceed 75% of the market value of the mutual fund units. On a decline of value of the units to $90,000 the borrower must reduce the loan to $67,500 (75% of $90,000). If the borrower does not have cash available, the borrower must sell units at a loss to provide money to reduce the loan.
Money is, of course, also required to pay interest on the loan. Under these circumstances, investors who use borrowed funds to purchase their investment are advised to have adequate financial resources available both to pay interest and also to reduce the loan if the borrowing arrangements require such a payment.
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Revisions and Changes
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Our Web Pages are under constant revision and subject to change without notice. Due to the dynamic nature of the mutual fund industry, we can make no guarantee as to the accuracy of the information presented. Mutual fund values fluctuate daily.
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General Information Purposes only
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This web site is intended for Canadian residents only. This web site is for general information only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please consult an appropriate professional regarding your particular circumstances. Redistribution of this information is prohibited without written permission.
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